Dear Baidu Stock Fans, Mark Your Calendars for August 18

Chinese tech giant Baidu (BIDU) is set to report its second-quarter results on Aug. 18, before the market opens. Ahead of the results, the company’s stock is facing pressure from its legacy business. However, Baidu’s other business segments have been surging, such as its AI-powered marketing business. 

Moreover, Baidu’s autonomous driving business is making inroads in Europe. Apollo Go, the company’s autonomous ride-hailing platform, has started road-testing the platform’s sixth-gen autonomous vehicle (RT6) in London, in a partnership with Freenow by Lyft (LYFT), with public rides expected next year. And, Baidu is eyeing a $50 billion IPO of its AI chip unit Kunlunxin. This is a big step for Kunlunxin, which has drawn interest from TikTok-owner ByteDance. 

With these developments in sight, we take a closer look at Baidu ahead of its quarterly results.

About Baidu Stock

Headquartered in Beijing, Baidu is a Chinese technology company whose operations span internet services, AI, cloud computing, and intelligent driving. Its business is anchored by mobile and web search, which support content distribution and online marketing services. Building on this foundation, Baidu develops AI models and applications for consumers and enterprises, while its cloud business provides computing and technology infrastructure. 

The company also designs smart devices and autonomous-driving solutions. In addition, through its iQIYI segment, Baidu participates in online entertainment by producing and distributing video and other digital content, giving the group exposure to advertising, technology, and consumer markets. It has a market capitalization of $37.2 billion. 

Baidu’s stock has been rewarded by investors due to its growth in AI cloud, AI-native marketing, and autonomous driving services. Over the past 52 weeks, the stock has gained 25.55%. However, this year, the stock has come under pressure, shedding 15.95% year-to-date (YTD) due to weakness in the legacy advertising business and concerns about margin pressure as Baidu invests heavily in AI infrastructure. The company’s shares had reached a 52-week high of $165.30 on Jan. 22, but are down 33.5% from that level. 

On a forward-adjusted basis, Baidu’s stock is trading at a price-to-earnings (non-GAAP) ratio of 14.82 times, a bit higher than the industry average of 12.98 times.

AI Powers Baidu’s Q1 Results Despite Legacy Business’ Weakness

For the first quarter, Baidu’s revenue dropped modestly year-over-year (YOY) to RMB32.08 billion ($4.75 billion). However, this drop was largely due to the slowdown in its legacy business, where top line declined by 29% YOY to RMB10.20 billion ($1.51 billion). 

The bright spot has been the Baidu Core AI-powered business, which grew 49% from the prior-year period to RMB13.60 billion ($2.01 billion). Revenue from AI-native marketing services reached RMB 2.30 billion ($340.73 million) during the quarter, up 36% YOY. The company also reported that Baidu app’s MAUs reached 655 million in March 2026.

On the other hand, Baidu’s margins remain pressured. The company’s adjusted EBITDA declined 17% YOY to RMB 5.95 billion ($882.04 million). Its earnings per ADS (on a diluted basis) decreased 35% YOY to RMB 12.06. 

Wall Street analysts have a mixed view about Baidu’s future earnings trajectory. For the current year, the company’s EPS is expected to drop by 16.9% YOY to $5.36. However, next year, EPS is projected to rise by 48% to $7.93. For the upcoming second-quarter results, analysts expect EPS to decrease by 20.1% YOY to $1.19. 

What Analysts Say About Baidu’s Stock

While Wall Street analysts have reiterated their stances on Baidu’s stock recently, they have also enacted sweeping price cuts. Last month, analysts at JPMorgan reiterated their “Overweight” rating on the stock but cut the price target from $230 to $205. 

BofA analyst Miranda Zhuang also lowered the price target from $180 to $165, but kept a “Buy” rating on Baidu’s shares. The firm cut its 2026-2028 forecasts for Baidu Core’s adjusted operating profit by 3%-8%, citing weaker advertising performance caused by declining traffic and increased investment in AI. 

Barclays analyst Jiong Shao maintained an “Equal Weight” rating and lowered the price target from $128 to $124. The analyst pointed to the decline in core advertising revenue, which the firm terms “collateral damage” due to the rapid adoption of AI chatbots. The firm sees this trend continuing into the second-quarter results and the rest of this year. 

Baidu has gained popularity on Wall Street, with analysts awarding it a consensus “Strong Buy” rating. Of the 20 analysts rating the stock, 15 have rated it a “Strong Buy,” one rated it “Moderate Buy,” three are playing it safe with a “Hold” rating, and one suggested “Strong Sell.” The consensus price target of $167.67 represents a 52.5% upside from current levels. Moreover, the Street-high price target of $215 indicates a 95.6% upside.